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Author: TMFDoraemon Big red star, 1000 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 130  
Subject: Looking to add ballast Date: 7/9/2012 1:54 PM
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Hi everybody,

I'm looking to add some high quality companies with above average yields or above average dividend growth. Some of the usual candidates (Unilever, Glaxo, Reckitt Bencksier, JNJ, etc.) are on my watch list, but I'm open to other ideas.

Any suggestions for other companies I should consider? Ideally I'll be adding more than one in the next few weeks.

Thanks,

Nathan
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Author: jgunnar Big red star, 1000 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32 of 130
Subject: Re: Looking to add ballast Date: 7/9/2012 2:20 PM
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Here is a related question - at what point does buying Europe start to make sense? The yields on blue chips are starting to approach US 08-09 levels. It seems a bit earlier still but there is a lot of bad news priced into EU dividends right now

ABB 4.3%
Tesco 6.4%
FTE 12%
RDSB 4.8%
NVS 4.5%

-gunnar

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Author: LTInvestorJim Big red star, 1000 posts Ticker Guide Global Fool SC1 Blue Captain Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33 of 130
Subject: Re: Looking to add ballast Date: 7/9/2012 9:55 PM
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Nathan --

I think one company that might fit your description is National Grid (NGG). Sort of a boring utility based in the UK, but with operations in the Northeast US. Yields 7.6%.

Jim

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Author: MazonCreekRich Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 34 of 130
Subject: Re: Looking to add ballast Date: 7/9/2012 10:33 PM
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Hi Nathan,

How about Australian Telestra, TLS on Aus. Stock Exchange, safest 7+% dividend around, but subject to indirect risks (and benefits) of commodity economy and currency?

Rich

MCR

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Author: BaltoBruiser Big red star, 1000 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35 of 130
Subject: Re: Looking to add ballast Date: 7/10/2012 10:50 AM
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Nathan,

I would suggest NVS, GSK, or AZN. All pharma plays that pay a nice dividend.

Bruiser

Disclosure: I work for AZN

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Author: TMFDoraemon Big red star, 1000 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 36 of 130
Subject: Re: Looking to add ballast Date: 7/10/2012 12:25 PM
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Hey everybody!

Thanks for all the great suggestions.

The pharma companies are definitely on my list, though I am still a little bit wary of what's going on in the peripheral countries. I find it odd that the Germans have the toughest pricing in the region, while the countries in a weaker position are having trouble paying their pharma bills but aren't trying to negotiate better pricing (a la the Germans).

Maybe I'm wrong to get caught up on this, but I'd like to see a little price reaction in the shares because of it before I jump in.

I do think it is the right time to start selectively looking in Europe. Primarily companies in Spain and Italy with a large amount of revenues outside of the home country. Inditex fits this mold, though it's not cheap at the moment.

I'll add these suggestions into the mix and we'll see what I come up with in the next few weeks.

Best,

Nathan

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Author: BaltoBruiser Big red star, 1000 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37 of 130
Subject: Re: Looking to add ballast Date: 7/10/2012 2:39 PM
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Nathan,

I know that some of the European countries are over a year behind in paying AZN's bills and have been for a while. From an accounting perspective, you have to write that off even if it is from country vs. company. What is masking this a little is the fact that you are selling new product to that country. These new sales are offsetting the write offs that you need to make on the old receivables that you have not been able to collect.

If Spain (using your example not saying that they are one of the countries over a year behind in their payments) renegotiates the price of Crestor to something lower a la the Germans, this will impact the amount of new revenue that will be used to offset the write off of the old. The only way that I can see Spain (again your example) getting new pricing would be if they paid some of their old bills to bring their receivables closer to current and I don't think they can do that given their current economic status.

I hope that helps you in your decision making process regarding the pharmas.

Fool on!
Bruiser

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Author: LTInvestorJim Big red star, 1000 posts Ticker Guide Global Fool SC1 Blue Captain Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 38 of 130
Subject: Re: Looking to add ballast Date: 7/10/2012 3:05 PM
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I think Inditex is a very interesting and innovative company.

If you are going to be researching that one, you might also look into Hennes & Mauritz (HMRZF) while you're at it for comparison. They don't have the Spanish thing you're looking for, but they and they are #2 to Inditex as the biggest European clothing retailers.

My daughter had told me how much she liked H&M, and so when I saw a store in Pasadena, I ducked in. Fantastically low prices on fashion and the store was jammed. Perhaps a European version of FRCOY?

First half report:
http://about.hm.com/content/hm/NewsroomSection/en/NewsRoom/N...

www.hm.com

Jim

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Author: TMFBreakerRob Big gold star, 5000 posts Old School Fool Home Fool Supernova Phoenix 1
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Subject: Re: Looking to add ballast Date: 7/10/2012 9:51 PM
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Hopefully not too late....

I'd suggest a look at Seadrill (SDRL). Deep sea driller with a very new and expanding fleet. As is typical with a Fredericksen company, it is growing more complicated with upcoming spinoffs and cross-owning relationships. Also, the payout is very high....and sustainable only with the expectation of growing profits.

I own it and have done well with it..... but I have to admit it creeps me out a bit. Therefore, it has a fairly small portfolio allocation of around 1% or so.

Worth looking at, but it needs a look beyond the surface to look attractive..... or extra scary. ;)

Rob

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Author: Saarkhx Two stars, 250 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40 of 130
Subject: Re: Looking to add ballast Date: 7/11/2012 12:02 PM
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Hi Nathan,

I'm Canadian and a couple of my "ballast positions" are, understandably, Canadian stocks. Besides a few GG recs, I own:

a) Penn West Petroleum Ltd.
symbol PWE (on NYSE), PWT (on TSX - Toronto Stock Exchange)
close price of yesterday: 12.97 CAD
dividend: quarterly 0.27 CAD
dividend yield: 8.3%

It's already around 5% of my stock portfolio, so I shouldn't buy it, but the temptation is there; at least I'm DRIPping it.

TMFDeej is a great fan, maybe he'll chime in.

b) Ag Growth International, Inc.
symbol AFN (on TSX)
close price of yesterday: 38.00 CAD
dividend: monthly 0.20 CAD
dividend yield: 6.3%

It's a former GG wild card, and overall one of my most performing positions among those I bought before August 2008.

c) Royal Bank of Canada
symbol RY (both on NYSE and TSX)

The dividend yield is 4.3%. The dividend was frozen (but not cut!) during 3 years, but since then it's increased 14% in one year. I except the average annual increase to hover between 5% and 10%.

d) Canadian Imperial Bank of Commerce
symbol CM (both on NYSE and TSX)

This one is a bit murky. Its problem began before 2008; the dividend was frozen (not cut; there would be riots in Canada if a chartered bank dared to cut its dividend!), and since the "melting" it increased only 3%. Its yield is now 5.0%, and I'm not sure it's high enough for the additional risks (additional with respect to e.g. RY which is more stable). I'm not sure I'd open a position, but I'm holding what I already have.

Sorry for the shallowness of my thoughts, but I'm sure you can dig those ones better than I do :-)

Best,

Saarkhx
long PWE, AFN, RY, CM
I'm also a client of RY

P.S.: maybe I'll write another post with non-Canadian stocks, but I'll need to check my portfolio first (those above were from the top of my head, except yesterday's quotes).

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Author: CM001 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 41 of 130
Subject: Re: Looking to add ballast Date: 7/11/2012 11:43 PM
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Sorry for the shallowness of my thoughts
Don't worry when I am around!

CRESY - CRESUD.

GG pick, owns farmland, If there is any global inflation then food prices will sure to raise, if not I guess between expensive medicine and food, you still need to eat every day, but can skip med.

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Author: Saarkhx Two stars, 250 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 42 of 130
Subject: Re: Looking to add ballast Date: 7/12/2012 9:17 AM
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Don't worry when I am around!

It's dangerous to encourage me :-)

CRESY - CRESUD.
GG pick, owns farmland, If there is any global inflation then food prices will sure to raise,


When GG recommended to sell, I agreed that the valuation was high, but I don't want to close a position just because the price is high; therefore I sold around 63% of my position in the $19's and held the rest.

I like it long term, but I believe it's way too risky to earn the label "ballast position": it's more likely to sink your portfolio :-)

if not I guess between expensive medicine and food, you still need to eat every day, but can skip med.

I knew a guy who tried to skip med (antidepressants, to be more precise) and I heard that her wife was not quite happy with the result...

Saarkhx
long CRESY and several pharma stocks
takes no meds

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Author: DRovito Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 43 of 130
Subject: Re: Looking to add ballast Date: 7/12/2012 2:02 PM
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How about the following list of DIV payers:

WM - 4.5%

WAG - almost 4%

JPM - 3.5%

MRK - 4%

TEF (Spain) - 8%

A lot of these form part of my IRA portfolio, where I participate in DRIPS.

Always looking for additional great DIV palyers for my IRA.

DRovito

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Author: DRovito Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44 of 130
Subject: Re: Looking to add ballast Date: 7/12/2012 2:03 PM
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Forgot one more:

MDC - 3.5% DIV

Regards

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Author: DRovito Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45 of 130
Subject: Re: Looking to add ballast Date: 7/12/2012 3:12 PM
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Also may want to look into the Preferred shares of blue chips which are paying nice DIVs

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Author: DRovito Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46 of 130
Subject: Re: Looking to add ballast Date: 7/12/2012 3:14 PM
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Sorry, this is the last one. I promise

GRMN - close to 5% DIV

Goodnight

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